Musings on Investing

India: Hawala Trade

India is imposing a 20% refundable tax on foreign expenses made in INR. While this money will theoretically be refunded in the following tax assessment, you will lose value because of high inflation. Moreover, most people will not claim this money, for they fear audits and harassment by rapacious tax officers. This fear has been a boon for Hawala transactions, which have drained the US dollar from the streets of India. Here are my thoughts:

As time has passed, corruption has become more blatant in India, and fanaticism is rapidly increasing. Previously, the US used to hold a higher moral ground. However, today, being woke and expedient, it hosts those it once used to ban from entry. Here are my thoughts on Modi’s recent visit to the US:

On Investments

I recently had a conversation with Maurice Jackson about why most people make a horrendous mistake by conflating resource companies with the underlying commodities they represent. We also discussed several coal companies:

Here are some more companies that have my attention:

  • Irving Resources (IRV; C$0.72): IRV has three drill rigs, with one operating 24 hours a day at the Omu project in Hokkaido. They have over $7 million in cash. Newmont is increasing its ownership in IRV by financing it at C$1.03 per share, a significant premium to the current share price.
  • Maritime Resources (MAE; C$0.04): They are buying the Point Rousee project from Signal Gold. And I wouldn’t be surprised if they bid for the now-defunct Rambler Mines. MAE can create good value if they do this combination right. To protect my downside, I wouldn’t buy it for more than C$0.04.
  • Rockcliff Metals (RCLF; C$0.035): RCLF is being acquired by Hudbay. At C$0.035, there would be a 19% arbitrage upside.
  • Nameson Holdings (HK:1982; HK$0.47): Nameson is a small knitwear manufacturing company catering to some of the top international brands. My clients and I have been invested in it for several years. The dividend yield is >10%. I expect the next dividend to be much higher.

The next Capitalism & Morality will be held on the 9th of September 2023. If this philosophy seminar interests you, please use the following coupon code to get a 10% discount rate: 1984. The ticket price will go up next week.

Jayant Bhandari

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